• Home / 
  • Learn / 
  • How To Write a Mortgage Gift Letter for Your Down Payment
Dan Green

Dan Green

Since 2003, Dan Green has been a leading mortgage lender and respected industry authority. His unwavering commitment to first-time home buyers and home buyer education has established him as a trusted voice among his colleagues, his peers, and the media. Dan founded Homebuyer.com to expand the American Dream of Homeownership to all who want it. .

First-Time Home Buyers Looking At Properties On A Non-Branded Laptop And Sincerely Enjoying Each Other'S Company Which Is Heart-Warming To Me And Probably You As Well They Look So Happy

How We Make Money

Homebuyer.com is your trusted guide to homeownership. Since 2003, our team has offered real-world expertise and advice to tens of millions of U.S. home buyers. Our content stands on its integrity: it's factual, unbiased, and free from outside influences. Read our editorial guidelines.

Homebuyer.com is a mortgage-company-affiliated publisher. We earn compensation when you click specific links on the website, or apply for a mortgage with Homebuyer.com or a partner listed in our comparison tables. Our partners compensate us differently, so we randomize our tables to protect our readers from steering. We may also earn compensation for advertisements on the site, which are indicated clearly. Note that limitations in our software, whether we originate mortgages in your area, and credit factors may affect the offers and comparison tables you see on various parts of this site. We do not include offers for every mortgage product available. Someday, we hope we will.

Trusted Content

Trusted Content

This article was checked for accuracy as of January 19, 2024. Homebuyer.com ensures every piece of information we share reflects the latest in mortgage standards. Learn more about our commitments in our editorial guidelines.

How To Write a Mortgage Gift Letter for Your Down Payment

Buying your first home calls for plenty of celebration with house-warming parties, neighborhood greetings, and new home photos that are sure to earn “likes” on Facebook.

After you get your mortgage pre-approved and you’re ready to buy, you may need a down payment to buy a house. Excited friends and family can contribute to your down payment by gifting funds. Mortgage gifts are a great way to cover your down payment and closing costs without spending thousands yourself.

Your lender wants to know that your gift isn’t a loan, so your donor will have to write a mortgage gift letter certifying their donation.

Here’s everything to know about mortgage gift letters.

What Is a Mortgage Gift Letter?

A mortgage gift letter is a signed letter from a donor certifying that their down payment gift money comes with no repayment expectations.

Money gifts from friends and family are a common way to help cover home buying expenses, like the down payment and closing costs. Lenders want to ensure that this money isn’t a loan, since additional debt may affect your mortgage approval.

The mortgage gift letter is an easy way to assure your lender that you don’t owe friends and family for their gift funds.

How Do You Write a Gift Letter for a Mortgage?

A mortgage gift letter must include the donor’s name and information, the gift amount, and other details about the home and gift. It’s written and signed by the donor, but your mortgage lender may have a template available to use.

A mortgage gift letter must include:

  • Donor’s name and contact information
  • Address of property being purchased
  • Donor and buyer’s relationship
  • Gift amount
  • Date of gift transfer
  • A statement that repayment isn’t expected by the donor
  • Donor’s bank, account number, and type of account
  • Donor’s signature

Once the gift letter is complete, you can provide documentation to your lender. Notaries aren’t required.

Mortgage Gift Letter Template

If your lender doesn’t offer a mortgage gift letter template, it’s easy to write yourself. Copy and customize our template below:


To: [Name/Address of Lender]I/We, [DONOR NAMES], certify our gift of $[GIFT AMOUNT] to [BUYER] is given without any expectation of repayment, implied or otherwise.

Our gift of $[GIFT AMOUNT] is to be applied toward the purchase of:

[HOUSE ADDRESS]

Money Given By:Name: [DONOR NAME]
Relationship To Buyer: [RELATIONSHIP]
Phone: [PHONE NUMBER]
Address: [DONOR ADDRESS]
Money Received By:Name: [BUYER NAME]
Phone: [PHONE NUMBER]
Address: [DONOR ADDRESS]
Source of Gift Funds:Bank: [BANK NAME]
Account Type: [CHECKING/SAVINGS]
Account Number: [ACCOUNT NUMBER]
Deposited: [DATE DEPOSITED]

Buyer’s Signature: _______________________________  Date: __________

Donor’s Signature: _______________________________  Date: __________

*Upon signing this gift letter, we certify that funds given to the home buyer were not made available by any persons or entities with interests in the sale of the above property, including the seller, real estate agent, lender, or other parties involved in the transaction.


When you make your home buying timeline, ask donors to provide a mortgage gift letter once your offer is accepted and before you close on the house.

Once all parties have signed the letter, you can deliver it to your lender for documentation.

Graphic: Download The Homebuyer.com Mortgage Gift Letter Template

Mortgage Gifts by Loan Type

Mortgage gift requirements will depend on the type of mortgage loan used to buy a home. All single-family, primary residence purchases can apply gift funds to a down payment, depending on who donates the money.

Conventional Loans and Mortgage Gifts

Conventional loans are the most common loan choice for first-time buyers and require that gift money donors are related to the buyer.

Family members eligible to donate gift funds include:

  • The buyer’s spouse
  • Children or dependents
  • Blood relatives
  • Legal relatives (for example, relatives by marriage, adoption, or legal guardianship)
  • Domestic partners or fiance/fiancee

Friends and other parties can’t donate to conventional loan mortgage gifts.

FHA Loans and Mortgage Gifts

FHA loan allow more than just family and friends to donate money. Donors may include:

  • Immediate family
  • Close friends
  • Employers
  • Labor unions
  • Charity organizations

Extended family, including cousins, nieces, and nephews, can’t contribute to FHA loan down payments.

f and VA Loans and Mortgage Gifts

USDA mortgages and VA mortgage are the most flexible with down payment gifts. These loans have no restrictions based on the relationship with the buyer.

However, donors can’t have an interest in the property’s sale. Prohibited donors may include the seller, real estate agents, lender, and others participating in the transaction.

USDA and VA loans both offer 100 percent mortgage financing, so you can choose to use mortgage gifts for closing costs instead of the down payment.

Mortgage Gift Requirements by Property Type

Most first-time home buyers don’t have to personally contribute to their down payment if they have gift money, down payment assistance, or a low down payment mortgage.

Some property types do have specific requirements for your contributions, though:

  • Single-family Homes: Single-family home purchases don’t have required contributions for the buyer. The down payment may be entirely paid through gift monies.
  • Multi-family Homes: Buyers must contribute their personal money for 5 percent of the down payment if they’re buying a multi-family or second home with less than 20 percent down.
  • Investment Properties: Down payment gifts can’t be used for an investment property.

You don’t have to worry about saving thousands for a down payment if you’re buying your first home.

Mortgage Gift Letter FAQs

Do you still have unanswered questions? Here’s what you need to know about your mortgage gift letter.

Do Buyers Pay Taxes on Mortgage Gifts?

Buyers don’t pay taxes on their mortgage gifts and don’t have to report gift monies to the IRS.

If a donor gifts more than $16,000 to a single buyer in 2022, they’ll be responsible for reporting that donation to the IRS. Contact a tax advisor for more information.

What Is the Maximum Gift Amount for a Mortgage?

There is no maximum mortgage gift amount that you can receive or contribute to your down payment. Donors are free to contribute as much as they’d like, and additional funds may be contributed to closing costs.

The only donation limit currently determines when a donor must report their gift to the IRS and doesn’t limit the gift amount. You can receive as much funding that’s available to you.

Does a Mortgage Gift Letter Need To Be Notarized?

No, a mortgage gift letter doesn’t need notarization. A mortgage gift letter should include specific details about the donor, buyer, and gift amount, including:

  • Donor’s name, address, and relationship to the buyer
  • Buyer’s name
  • Address of property being purchased
  • Gift amount, transfer date, and banking details
  • A statement certifying that the donor doesn’t expect repayment
  • Signatures of the buyer and donor

The lender can confirm the gift amount details through the buyer’s bank statements.

Final Thoughts

A mortgage gift is a generous way for friends and family to help you purchase your first home. With enough support, you may buy your home without contributing to the down payment or closing costs yourself.

A mortgage gift letter certifies that gift monies have no repayment expectations, so you can receive an accurate mortgage offer without lenders assuming a large amount of new funds is loan debt.

Register for our free home buyer curriculum to answer all of your home buying questions.

Happy homebuying.


What to do next

See how much home you can afford to buy. Use our no-risk Immediate Mortgage Approval and find your mortgage eligibility in an instant.

Get approved here.

       Buying your first home calls for plenty of celebration with house-warming parties, neighborhood greetings, and new home photos that are sure to earn “likes” on Facebook. After you get your mortgage pre-approved and you’re ready to buy, you may need a down payment to buy a house. Excited friends and family can contribute to your […]

Subscribe to our Newsletter

Be a better buyer. Subscribe now and never miss out on exclusive insights, new market trends, and first-time buyer programs.

Ready to get started?

Finding your dream starts here. Apply in minutes.

Get Pre-approved
© 2021-2024 All rights reserved. Growella Inc d/b/a Homebuyer. Homebuyer.com is powered by Novus Home Mortgage, a division of Ixonia Bank, NMLS 423065. www.nmlsconsumeraccess.org Homebuyer is located at 230 Findlay Street, Cincinnati, Ohio 45214. Novus Home Mortgage, a division of Ixonia Bank, is located at 20225 Water Tower Blvd. Suite 400, Brookfield, WI 53045. We have no affiliation with the US Department of Housing and Urban Development, the US Department of Veterans Affairs, the US Department of Agriculture, or any other government agency. US Government agencies have not reviewed this information and this site is not connected with any government agency. Equal Housing Lender. Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. The receipt of the application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.